Introducing the NZAAE
The NZAAE is an incorporated society comprised of employers who manage their ACC claims through the Partnership Discount Programme (PDP) or the Full Self Cover option under the Accredited Employer Programme (AEP). The NZAAE includes members who are not Accredited Employers but have an interest in the programme such as Third Party Administrators, Actuaries, and insurers. Our members collectively employ over 130,000 full time equivalent employees.
The NZAAE provides a united voice for our members so that our interests can be represented to ACC and the Minister. We also maintain a close relationship with similar groups in Australia because there is much that can be learned from the Australian experience of self insurance.
Discussion
After full review of the 2014/2015 Pricing Report and Levy Consultation Documents, as well as previous years Consultation Documents (excluding 2011/2012) NZAAE would like to make the following observations.
Table 1 below indicates the effect of the residual levy and funding adjustments of the past six years and uses information provided by ACC and best estimations on future years projections. (Data from 2011/2012 was not examined but has been included for completeness).
Graph 1 indicates the comparative difference between funding adjustment and residual levy collection as it is expressed in the combined work account levy. The New Claims Levy collects the fully funded levy for claims incurred in the year it is collected. It is important to note that it is only the New Claims Levy that is discountable for levy incentive purposes for the Accredited Employer Programme.
Table 1: Levy Consultation Data from 2008 to 2022 (2011/12 data not available)
The NZAAE is an incorporated society comprised of employers who manage their ACC claims through the Partnership Discount Programme (PDP) or the Full Self Cover option under the Accredited Employer Programme (AEP). The NZAAE includes members who are not Accredited Employers but have an interest in the programme such as Third Party Administrators, Actuaries, and insurers. Our members collectively employ over 130,000 full time equivalent employees.
The NZAAE provides a united voice for our members so that our interests can be represented to ACC and the Minister. We also maintain a close relationship with similar groups in Australia because there is much that can be learned from the Australian experience of self insurance.
Discussion
After full review of the 2014/2015 Pricing Report and Levy Consultation Documents, as well as previous years Consultation Documents (excluding 2011/2012) NZAAE would like to make the following observations.
Table 1 below indicates the effect of the residual levy and funding adjustments of the past six years and uses information provided by ACC and best estimations on future years projections. (Data from 2011/2012 was not examined but has been included for completeness).
Graph 1 indicates the comparative difference between funding adjustment and residual levy collection as it is expressed in the combined work account levy. The New Claims Levy collects the fully funded levy for claims incurred in the year it is collected. It is important to note that it is only the New Claims Levy that is discountable for levy incentive purposes for the Accredited Employer Programme.
Table 1: Levy Consultation Data from 2008 to 2022 (2011/12 data not available)